Prepare for Unpredictable Weather as El Nino Looms, Insurers Warn

An El Nino event is known to bring about record-high temperatures and extreme weather patterns, particularly in the eastern part of Australia. In light of this, NRMA Insurance EGM Direct Claims, Luke Gallagher, stresses the importance of taking precautions this spring by being aware of local bushfire and emergency warnings and mitigating fire risks around the home.

Last winter, NRMA Insurance received 4184 claims for wild weather damage, which is significantly lower than the 26,515 claims received the previous year and the 12,831 claims in the autumn season. "This decrease is largely due to the milder weather we experienced this past winter compared to intense rainfall and storms that affected many parts of the country in the previous year," explains Mr. Gallagher. Out of the 4184 claims, 3094 were related to home damage caused by wild weather, while wild weather incidents made up less than 1% of all motor claims during the winter season.

NRMA Insurance recommends several precautionary measures to protect homes and minimize potential damage during wild weather. These include trimming trees, clearing gutters, creating a clear area around the home, and having a long hose readily available. A quarterly survey conducted by the insurer revealed that 55% of Australians plan to make preparations by summer, but only 27% are confident in their preparedness plans if their home were threatened by bushfires.

In Tasmania, a fire broke out in Coles Bay on Tuesday due to strong winds exceeding 100kph. The fire isolated the Freycinet Peninsula and led to evacuation recommendations. According to NRMA Insurance Meteorologist Bruce Buckley, the increased sea temperatures pose added risks associated with rising temperatures this season. He also warns of an increased likelihood of hailstorms and severe thunderstorms in spring, especially in southeast Queensland and eastern New South Wales.

Aside from NRMA Insurance, the Insurance Council of Australia (ICA) is also highlighting the importance of early bushfire preparation. The organization encourages Australians to maintain their gardens, ensure adequate coverage for home contents, prepare an inventory of belongings, and review insurance policies. ICA Acting CEO, Kylie Macfarlane, emphasizes the need for vulnerable communities to be better prepared, especially for those who are still recovering from past natural disasters. Macfarlane advises against taking risks when it comes to insurance protection, even if not all insurers enforce coverage embargoes during bushfires or when an area is at risk.

The devastating Black Summer bushfires that occurred four years ago resulted in insured losses of $2.32 billion and almost 39,000 claims. Since then, insurers have paid out more than $16.8 billion for natural disaster claims from 13 declared catastrophes and five significant events.

Published:Monday, 25th Sep 2023
Source: Paige Estritori

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